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Originally Posted by Coach
Yeah, I'm just not sure I buy that. Disney+ doesn't really make original content the way something like Netflix does. Disney itself and its various subsidiaries makes content that ends up on Disney+, a service people pay for independently of its other many, many revenue streams. So how can Disney+ itself be a financial burden? All it is is a holding place for all the content it owns.
So from an accounting level, you can definitely make a $200M movie, put it on Disney+ and call it a loss because you're not making public whether or not that movie pulled extra revenue solely by it's own. They can do that with basically everything they own and call it losses for tax purposes. Same with Apple. They don't make money from Apple+, they make it from their products. Amazon doesn't make money from it's original content, it makes money from it's online shopping memberships.
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You're confusing things here. The profitability of an individual movie or series does not matter in terms of the profitability of a whole streaming service, even in accounting terms.
It also doesn't matter whether you spend money in original or licensed content, what matters is that you spend money.
Disney spent 24 billion on just streaming content last year.
Netflix spent 17 billion on content. That's a lot less. They have a lot more subscribers. That's why they make a lot more money.
(...and yeah can argue that Apple and Amazon don't need to worry about their streaming services not being profitable, but you can't argue that they make money.)